Global electricity demand is forecast to rise 8% by 2040 as a result of electric vehicles (EVs).
New research by Bloomberg New Energy Finance (BNEF) suggests electricity will not be the only sector to be dramatically affected by the EV revolution – oil, retail, tax collection, construction, city infrastructure and freight transport will all feel the impact.
Falling battery costs are forecast to drive rapid growth in the electric car market between now and 2040, during which time EVs will go from making up less than 0.8% of global light vehicle sales to a predicted 35%.
Car dealerships and repair shops will suffer as fewer moving parts of EVs mean they outlast traditional cars and go wrong less frequently, the report states.
They will increase global electricity demand by 8% – up to 2,701 terawatt hours by 2040.
Oil demand and consequently production are forecast to fall by 13 million barrels a day during the same period.
The report adds construction and infrastructure sectors will benefit from installing charging points at homes, offices and roads all over the country while petrol stations are likely to thin out as EVs become more popular.
Electrification will spread to other forms of transport too such as bikes, motorbikes, boats and even lawnmowers and snowmobiles, boosting manufacturers who have a hand in these areas, BNEF forecasts.
Many of those effects will be welcome for consumers but some will no doubt pose challenges for policy-makers and established businesses, it adds.